Fannie Mae-No Politics (FNMA)

[kthomp19]

Nobodys answered the question of who's going to buy 50-60 Billion dollars worth of a diluted common stock? Especially considering all that the previous investors had gone through. Where is the demand going to come from?

This has been answered several times. As long as the rate of return is perceived to be high enough there will be plenty of demand. $50-60B is a drop in the bucket of what is available to invest. Remember that some if not most of the demand comes from outside the US.

This becomes doubly true if a reform plan involves the restoration of common dividends. Retirement and pension funds will snap shares up in an instant at the right dividend rate. A utility model would make shares even more attractive to them.

What previous investors went through is tied to the old administrations (George W and Obama). Obama's administration in particular was actively hostile to FnF and the shareholders, while the current administration is so far hands-off and basically neutral.